International Business Exam 1

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Information technology has created a competitive advantage for firms by allowing them more opportunities to outdo their competitors.

Which of the following statements regarding information technology is​ accurate?

space perception

During a conversation in Latin​ America, people stand closer together than in northern Europe or the United States. This is an example of cultural differences in​ ________.

Ethics

Which of the following terms describes moral principles and values that govern the actions of​ individuals, corporations, and governing​ systems, with respect to what is right and what is​ wrong?

Cultural metaphor

Which of the following terms represents unique traditions that serve as guides for interpreting​ attitudes, values, and​ behaviors?

Avoiding the use of sweatshops

Which of the following would most likely be a social interest of a sustainable​ business?

Firms reduce manufacturing costs and retail prices by moving manufacturing activities to nations with lower costs of labor.

Which one of the following best explains the globalization of​ production?

The liberalization of markets

Which one of the following factors best explains why trade growth has outperformed GDP growth over the​ years?

An Indian apparel company sets up a factory in Madagascar.

Which one of the following is an example of globalizing​ manufacturing?

Polycentric orientation

Which one of the following is a​ host-country mindset in which an individual acquires an attachment to the country in which they conduct their​ business?

Developing economies of scale

Which one of the following motivations for international expansion involves expanding overseas in order to grow the customer base and increase the number of products being​ manufactured?

Industrialization in​ fast-growth developing economies

Which one of these factors is driving global economic​ transformation?

Second phase

Which phase of globalization is composed of the growth and supremacy of multinational enterprises in the industrial and agricultural​ industries?

The second phase -- ​1900-1930

Which phase of globalization was triggered by the rise of electricity and steel​ production?

Gender roles typically overlap in feminine cultures.

Which statement about masculine and feminine cultures is​ correct?

Idiom

Which term refers to an expression whose symbolic meaning differs from the literal​ meaning?

Internationalization

Which term refers to the trend of corporations to methodically expand their worldwide business​ activities?

There is a convergence of consumer lifestyles and preferences worldwide.

Why can many global products and services be​ standardized?

provides services

​Cross-cultural differences can impact a​ firm's activities. A firm that​ ________ primarily faces language and​ cross-cultural difficulties due to significant interaction with customers.

ambiguity

​Cross-cultural differences in business can lead to problems with​ ________, which is when information and instructions can be understood in multiple ways.

Improved living standards

​Nigeria's telecom infrastructure has increased telephone usage to over 30 million cellular subscribers. What is the most likely benefit Nigeria will realize from adding​ telephones?

Ethics

​_______ are moral principles and values that govern the behavior of​ people, firms, and governments regarding right and wrong.

Facilitators

​________ are corporations or individuals with expertise in​ finance, legal​ advice, customs​ clearance, or support services that help firms perform international business transactions.

Grease payments

​________ are small payments made to​ low-level government officials to perform routine duties more efficiently.

A code of ethics

​________ describes the values and expectations that guide the decisions of all employees in a firm.

Organizational buyers

​________ include ​businesses, institutions, and governments.

Focal firms

​________ initiate international business activities by​ envisioning, crafting, and creating goods and services for global buyers.

Economic interests

​________ involve a​ company's concern with​ wages, taxes, public​ works, and disadvantaged communities.

Global outsourcing

​________ involves a company paying external suppliers and​ contractors, who are located in foreign​ nations, to perform​ value-adding activities.

A prejudice

​________ is an inflexibly held attitude that is generally negative and typically aimed at particular groups of people.

​Self-reference criterion

​________ is the tendency to view other cultures through the lens of​ one's own culture.

Embezzlement

​________ occurs when an employee purposely mismanages or even steals money belonging to an employer.

​Cross-cultural risk

​________ refers to a situation in which a human value is at stake due to a cultural misunderstanding.

Globalization of markets

​________ refers to the gradual integration and growing interdependence of national economies.

Commercial risk

​________ represents possible losses or failures as a result of poorly implemented business​ strategies, maneuvers, or processes.

the tendency of a financial crisis in one country to spread quickly to other countries

Contagion is​ ________.

Pursuing prospects for growth through market diversification.

A U.S. manufacturer of automatic car wash equipment has seen its U.S. sales decline. The manufacturer decides to expand into Mexico and Canada. This is an example of which one of the following motivations for international​ expansion?

Both Russia and China feature​ fast-growing economies.

A business student in Texas is considering learning a foreign language. Why might she benefit from studying a language such as Russian or​ Chinese?

globalization

A macro trend of intense economic interconnectedness among the nations of the world is called​ ________.

monochronic

A person with​ a(n)________ orientation has a strong orientation to time and is dependent on strict agendas and promptness.

Reshoring

ABC Enterprises transferred some of its manufacturing and other​ value-chain activities to a more​ cost-effective location in China five years ago.​ Recently, ABC Enterprises has undergone a change in​ management, and the new manager has decided to move those​ value-chain and manufacturing activities back to the home country. In which one of the following is ABC​ participating?

distribution channel intermediary

A​ ________ is a professional company that offers logistics and marketing services for focal firms as part of worldwide supply chains.

Implementing corporate citizenship efforts

Based on her studies of international​ business, Yolanda Sanchez decides to buy paper for her office supply store from wood grown in sustainable forests in​ Canada, even though the sustainable paper costs more than other paper. Considering the reasons to study international​ business, which of the following best explains Yolanda​ decision?

powering a certain percentage of its operations with green energy

Corporate social responsibility​ (CSR) is best illustrated by an organization​ ________.

Country risk

Custom​ Cars, a painting and auto modification​ company, has expanded operations into South America. The first problem Custom Cars encountered was determining the applicable laws in the new country.​ Next, Custom Cars was informed by the local mayor that the firm will be shut down if it does not prepay its taxes in cash. Which risk in international business is Custom Cars​ encountering?

virtue

Darron Alvarez needs to decide whether to close down a plant located in a country where the factory is a major employer. According to the accounting​ department, closing the plant makes financial​ sense, but Darron does not have the heart to fire the workers. Based on his own personal values and his affection for the​ employees, Darron decides to try harder to find ways to make the plant viable.​ Darron's ethical standard is BEST described as the​ ________ approach.

relativism

Emir believes that all ethical truths are not absolute but instead differ between groups of people. Emir believes in the concept known as​ ________.

nongovernmental organizations

Education and healthcare are two examples of​ _________ in international business.

ability to control its own economy

Globalization can threaten national sovereignty by interfering with a​ country's ________.

foreign cars outselling domestic cars in the United States

Globalization has created rivalry between U.S. firms and foreign​ competitors, which has resulted in​ ________.

Develop a sensitivity for different cultures.

How can companies avoid​ cross-cultural misunderstandings?

Country risk

If a firm is operating in a foreign​ country, what type of risk does it face from the​ country's political,​ legal, and economic​ environment?

organizational structure

In international​ business, ________ primarily relates to whether a firm is​ centralized, decentralized,​ bureaucratic, or entrepreneurial.

environmental

Increasing the use of recyclable​ materials, using alternative energy​ sources, and decreasing pollution are all​ ________ interests of sustainable businesses.

To develop a network of people and increase business in the future

India is entering the global age and has a growing middle class. An Indian car manufacturer wants to offer a car for the average citizen of​ India, but does not have the technology available to create an inexpensive car that meets the laws that the Indian government is considering imposing. The company sets out to find a U.S. hybrid and electric car manufacturer that is willing to work with them. Why would a U.S. firm most likely​ agree?

Africa

In​ 2017, which region had the smallest proportion of Internet​ users?

polychronic

In​ a(n) ________​ culture, people are​ flexible, and they value multitasking and spending a lot of time with others. Such cultures do not put much emphasis on time and schedules.

socialization

Joe has just relocated to China for work and is in the process of learning the​ rules, behaviors, and lifestyles that are considered appropriate in Chinese society. Joe is engaged in​ ________.

unethical behavior

Law firms sometimes ask their employees to pad their billable hours or charge customers for tasks they did not perform. This is an example of​ ________.

environmental CSR

Minimizing the creation of contaminants and working to improve the natural surrounding is the primary focus of​ ________.

Confucianism

More of a way of thinking than a​ religion, ________ reflects a positive view of human nature and has a strong emphasis on ethical behavior.

Advertising themes often lose their original meaning in translation or convey unfavorable interpretations.

Nasreen Patel is the newest member of the marketing team at Office​ World, an office supply store chain in the United States. Nasreen has been hired to help the company alter its marketing campaign to better suit the needs of potential international customers. Nasreen suggests changing the​ company's current,​ long-time ad slogan when marketing in foreign​ countries, but several members of the team disagree. Which of the following would BEST strengthen the argument for changing the current ad slogan when marketing in foreign​ countries?

Corporate governance

Of the​ following, which term describes a collection of techniques and practices that are used to manage and control​ organizations?

facilitate a reduction in trade barriers

One of the tasks of the World Trade Organization​ (WTO) is to​ ________.

born global firm

Pioneer Systems is a young entrepreneurial company that has engaged in international business from the day it opened its doors. Pioneer is categorized as a​ ________.

fraud

Recently Ravi got a phone call from what he thought was his bank asking him to verify some personal information such as his Social Security number and bank card numbers. He later found suspicious charges on his bank statement from an unknown source. He contacted his​ bank, which informed him that it never contacted him. Ravi was most likely a victim of​ ________.

Translation software automatically converts email from Chinese to English.

Technology can both enhance and hinder cultural awareness. Analyze each scenario and select the option in which technology most successfully enhances​ cross-cultural communication.

​High-context culture

The Osaka Tea Company of Japan uses nonverbal messages during its management meetings to ensure harmony within the company. The managers exhibit a polite style to show respect and are careful not to make any remarks that could offend others. What kind of culture does this company​ represent?

a global decrease in barriers to trade

The formation of the WTO and the emergence of economic integration blocs led to​ ________.

contagion

The trend of financial crises spreading from one country to another is known as​ ________.

rights

The​ ________ approach to corporate governance is based on the belief that human dignity must be maintained and protected no matter what.

common good

The​ ________approach to corporate governance asserts that the best action stresses respect and compassion for all and improves the quality of life for all affected people.

Reducing child labor

Town​ Boutique, a local clothing​ store, recently switched suppliers due to rumors that its supplier in Bangladesh was employing underage workers in its factories. By no longer doing business with the supplier in​ Bangladesh, Town Boutique was upholding which CSR​ value?

Enhancing economic growth and productivity.

What has been the result of making improvements to​ Nigeria's cell phone​ infrastructure?

Ideas or works created by individuals or firms.

What is intellectual​ property?

Verbal language

What is one of the most significant expressions of a culture that provides cultural​ insight?

To reduce the costs of​ R&D and production

What is one of the most typical reason for locating​ value-chain activities​ abroad?

To communicate with connected individuals in new markets

What is one reason companies use social media such as Snapchat and​ Twitter?

Learning about a new culture

What is the LEAST likely motive for international​ expansion?

Nestlé wants to earn profits in international markets

What is the most likely reason that​ Nestlé sells its food and beverage products​ worldwide?

Bribery

What is the most notable form of corruption in international​ business?

The tendency to view other cultures according to our own culture.

What is the​ self-reference criterion?

offshoring

When a company transfers its​ value-chain activities by launching a subsidiary in a foreign​ country, it is called​ ________.

acculturation

When an individual goes through a process of becoming acclimated to a different​ culture, it is called​ ________.

bribery

When an individual offers money or favors to someone for personal gain or in order to persuade that person to participate in some form of​ corruption, it is called​ ________.

internationalization

When companies systematically engage in increasing the international dimension of their business activities it is known as​ ________.

Progression of international investments and financial activities

Which dimension of globalization involves the unrestricted movement of capital and the expanded networks of economies throughout the​ world?

Growth of regional economic integration blocs

Which dimension of market globalization is a result of the North American Free Trade​ Agreement, as well as other​ countries' agreements that have facilitated reduced trade barriers among their​ members?

Culture is relative.

Which of the following BEST describes​ culture?

Promoting workplace cleanliness

Which of the following is NOT an example of corporate social responsibility​ (CSR) values?

Many emerging markets are now​ value-adding producers.

Which of the following is a likely cause of​ globalization?

Being closer to supply sources

Which of the following is a motivation for international​ expansion?

Rotating farm crops

Which of the following is an example of a sustainable​ practice?

Contagion

Which of the following represents the trend of economic disaster spreading from one country to​ another?

BMW introduces electric cars with​ carbon-fiber bodies to save fuel.

Which of the following situations illustrates​ sustainability?

To demonstrate social responsibility and good environmental practices

Why did Starbucks begin selling coffee only from growers certified by the Rain Forest​ Alliance, a nonprofit organization that promotes the interests of coffee growers and the​ environment?

Meetings would be​ flexible, and the conference room would have a round conference table.

Your company is initiating a business relationship with a country that has a polychronic perception of time and an informal culture. Which option indicates what you would expect from this​ company?

International business supports sustainability and corporate citizenship.

Your roommate is uncertain about a college major. Knowing that she is passionate about social and environmental​ causes, you suggest that she major in international business. When she graduates and works for a large​ company, you assert that she will be able to influence the​ company's actions as they affect society and the environment. Which one of the following reasons for studying international business are you​ advocating?

idiom

​A(n) ________ is an expression whose symbolic meaning is different from its actual or literal meaning.

Market liberalization and implementation of open markets

​China, India, and Eastern Europe have become known as​ cost-effective places for producing goods and​ services, and they have attracted an increasing amount of foreign capital into their economies. Which driver of globalization best explains this​ occurrence?

Developing a global plan to protect water resources

​Coca-Cola demonstrates social responsibility by doing which of the​ following?


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